The ratio complements the analysis of long-term solvency ratio based on equity coverage, which should be particularly analysed when thelong-term solvency ratio based on equity coverage (golden balance rule) is below 1 or drops significantly in the analysed period. Long-term solvency ratio based on the fixed capital coverage is often called a golden financial rule, which is a less restrictive version of the golden balance rule. Golden financial rule says that fixed assets should be covered by stable financing sources such as fixed capital, being the total of equity and long-term debt.
